![]() ![]() ![]() In 2018, Oil Search had acquired a $400 million operated position in the field from Armstrong Energy and GMT Exploration Company, marking its first foray into the U.S.Ĭoncurrently, Oil Search entered a bilateral acquisition agreement with Repsol to align ownership interests across Oil Search’s and Repsol’s shared Alaska assets. The option acquisition will result in Oil Search owning a 51 percent operated interest in the Pikka Unit and adjacent exploration acreage, and a 75 percent operated interest in the Horseshoe Block and Hue Shale. Meanwhile, ConocoPhillips CEO Ryan Lance said last week that construction at the massive Willow oil development to the west of Pikka could begin as early as this winter, should regulators agree.Īlso in the works is a plan by Italian major Eni to drill an offshore development well at its Nikaitchuq field this month.Shearman & Sterling advised Oil Search (Alaska) in connection with its exercise of a $450 million option to double its investment in the Nanushuk field in Alaska’s North Slope, while concurrently transacting to align project interests with Repsol E&P USA Inc. Last month, Alaska-focused E&P 88 Energy said it would resume drilling in the North Slope next year after an independent resource estimate found its Icewine assets could hold more than 1 billion barrels of recoverable oil reserves. Pikka’s FID comes amid a broader uptick in E&P activity in Alaska. It said Wednesday that it still intends to sell down its 51% interest in Pikka. ![]() Santos tried to divest its stake in the project after the merger but failed to find a buyer. Santos inherited its stake in Pikka in 2021 when it acquired Australia-based Oil Search. The find was then proved up to its current estimate of 1.2 billion barrels of recoverable light oil after a pair of appraisal wells drilled in 2016-17 confirmed the discovery’s extent.Īt the time, Repsol called it the "largest US onshore conventional hydrocarbons discovery in 30 years."Ī 120,000 b/d development project was supposed to start up on 2021, but the Covid-19 pandemic, the oil price collapse and a change in ownership delayed those plans. Repsol and then-partner Armstrong Energy confirmed the Nanushuk’s resource potential during the 2014-15 drilling season. Pikka lies west of the central North Slope region, close to ConocoPhillips’ producing Kuparuk unit, and will be the first to produce from the Nanushuk formation. The Spanish firm said Pikka will use existing infrastructure and incorporate low-emissions technologies to reduce its overall emissions to about 75% below the average for other North Slope developments. Repsol said Pikka has one of the lowest carbon intensity indexes in its global upstream portfolio and will help both it and Santos achieve their ambitious emission reduction goals. The project is expected to start up in 2026 with gross production of about 80,000 barrels of oil per day. Santos operates Pikka with a 51% stake, with Repsol holding the remaining interest. The partners said they took a final investment decision (FID) on Pikka's $2.6 billion first phase, which will see 45 wells drilled from a single pad as well as the construction of a production facility, operating center, seawater treatment plant and connecting pipelines.įollow-on phases will require an estimated $400 million or so in additional investment, according to Repsol. Spain's Repsol and Australian independent Santos said Wednesday that they are moving ahead with the development of the Pikka project on Alaska's North Slope. ![]()
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